Bsef2012 session1 investment_climate_markus

Competition for FDI in the Black Sea Region? What investors from Germany are looking for

Black Sea Economic Forum

4th October, 2012, Yalta

FDI (shared capital) in Ukraine

Country of origin accumulated FDI in % of total

Total 52,426.7

Cyprus 14,521.5 27,7 %

Germany 7,403.9 14,1 %

Netherlands 4,949.3 9,4 %

Russian Federation 3,652.5 7,0 %

Austria 3,249.6 6,2 %

France 2,505.2 4,8 %

United Kingdom 2,493.1 4,8 %

Virgin Islands (Brit.) 1,749.7 3,3 %

Sweden 1,566.1 3,0 %

Switzerland 1,071.5 2,0 %

USA 988.0 1,9 %

Italy 985.0 1,9 %

Poland 861.9 1,6 %

from other countries 6,429.4 12,3 %

Alexander Markus, Delegation der Deutschen Wirtschaft in der Ukraine, 24.09.2012 Slide 2

1st July, 2012 – source: State Service for Statistics of Ukraine, http://www.ukrstat.gov.ua/

http://www.ukrstat.gov.ua/


FDI (shared capital) in Ukraine

Country of origin accumulated FDI in % of total

Total 52,426.7

Cyprus 14,521.5 27.7 %

Netherlands 4,949.3 9.4 %

India at least 4,800.0 9.2 %

Russian Federation 3,652.5 7 %

Austria 3,249.6 6.2 %

Germany 2,600.0 5.0 %

France 2,505.2 4.8 %

United Kingdom 2,493.1 4.8 %

Virgin Islands (Brit.) 1,749.7 3.3 %

Sweden 1,566.1 3.0 %

Switzerland 1,071.5 2.0 %

USA 988 1.9 %

Italy 985 1.9 %

Poland 861,9 1.6 %


1st July, 2012 – source: State Service for Statistics of Ukraine, http://www.ukrstat.gov.ua/



stability

stability

…not changing the rules of the game in the very middle

of the gameAlexander Markus, Delegation der Deutschen Wirtschaft in der Ukraine, 24.09.2012 Slide 4

predictability

predictability

not changing official positions every now

and then


long-term planning cycles


long-term planning

…for investment into people,

equipment and sites

foundation stone ceremony of W.E.T. housing complex in Vinogradiv, 4th Sept. 2012

transparency

Transparency

…for example of

• investment procedures

• rules

• decision making

• payments


Investing into their own business

German investors know their own business

very well, some for centuries and generations.

That is what they invest in!


10 Years Leoni Wiring Systems in Striy, Lviv Oblast

criteria

Investment criteria• markets for both

– purchasing and

– sales

• supply framework

• land sites with infrastructure

• work force

• connection to major transport corridors

• investment climate

• political stability


barriers to German investment


lack of qualified work force

work and liviing permits for foreigners

import VAT on capital stock

costs and supply of energy

purchasing sites and real estate

product certification

currency risk

low purchasing power

licensing and permits

VAT reimbursement

taxes

expensive credits

customs

extensive bureaucracy

red tape

low level rule of law

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0

2.2

2.3

2.4

2.7

2.7

3.0

3.1

3.2

3.2

3.3

3.4

3.6

3.9

4.3

4.3

4.3

Many thanks!

Alexander MarkusDelegation of German Economy in UkraineUkraine, 01004 Kyiv, vul. Pushkinska 34,

phone +38 044 234 5995 [email protected],

www.ukraine.ahk.de Picture copyright: Images and/or photos in this presentation on slide 1, 2, 3, 5, 6, 7 are the copyrighted

property of 123RF Limited, their Contributors or Licensed Partners and are being used with permission under license. These images and/or photos may not be copied or downloaded without permission from 123RF

Limited. Picture on slide 4 is the property of Alexander Markus. The same as above applies.


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Bsef2012 session1 investment_climate_markus